Japan’s Ministry of Finance says that Governments of Japan and the Philippines have signed a revised tax treaty. The two countries have entered into formal negotiations in May and reached basic agreement in July this year. The current tax treaty between Japan and the Philippines was signed in February 1980 and took effect 20 July 1980.
The revised tax treaty will reduce withholding tax rates on dividends, interest income and patent royalties between Japan and the Philippines. It will also set an expiry on tax spearing credits to the next ten years.
The protocol reflects the importance of the economic relationship between the two countries and is intended to promote mutual investments between Japan and the Philippines.
Important features of the revised tax treaty include the reduction of withholding tax rates on dividends and interests.